There are several reasons why you should opt for educational loan to meet the expenses of higher studies at reputed institutes with one particular reason being tax benefit. Student education loan can get you some tax deduction benefits, which in turn trims down the total cost of the loan. According to Income-Tax Act: Section 80 E you can claim tax rebate on the interest to be paid on student loan only if it satisfy the following criteria -

• You are eligible for getting tax deduction when you take education loan in your name, for your study or for the study of your spouse or your child and no one else in the family.
• Tax rebate is available within a time span of 8 years beginning from the year of loan sanction.
• Tax rebate is available on the interest only and not on the principal amount.
• Tax deduction can be claimed only if the loan is taken from a bank or any financial institute.
• The course against which loan is taken must be a full-time course for any graduate or post-graduate course in the discipline of management, medicine, engineering and applied and pure science.